When a parent/investor sells an ownership interest,a gain or loss is recorded where the interest sold leads to deconsolidation of a former subsidiary.

Question

Quizplus · Accepted Answer

When a parent/investor sells an ownership interest in a subsidiary, the resulting gain or loss is recorded in the parent's income statement, and the subsidiary is deconsolidated from the parent's financial statements. This is because the parent no longer has control over the subsidiary's operations and therefore cannot include its financial information in its own statements.

When a Parent/investor Sells an Ownership Interest,a Gain or Loss